Kroll Fraud Solutions Blog – A Dialogue on Data Security

Young adults often make poor choices when it comes to social networking; so, many people argue that the younger generation simply doesn’t care about their own privacy. However, a recent survey refutes that argument – entitled How Different are Young Adults from Older Adults When it Comes to Information Privacy Attitudes and Policies?, it reveals little evidence that young adults’ attitudes toward privacy are fundamentally different from those of older adults. What the data did show, however, was that a higher proportion of 18-24 year olds believe (incorrectly) that information privacy laws protect their data both online and offline than do other age groups.

The Federal Trade Commission (FTC) has pushed back the enforcement date for the Red Flags Rule yet again – this time to December 31, 2010. The original compliance date for this rule was November 1, 2008, and it has since been pushed back four other times: May 1, August 1, and November 1 of 2009, and then to June 1, 2010. The reasons for the delays have varied, mostly to give businesses that the FTC classified as covered entities the chance to further prepare. However, this latest delay comes at the request of several members of Congress, as they are considering legislation that may limit the scope of entities covered under the rule.

Back at the first week of May, we discussed the CBS News report about copier security that was gaining so much attention. It has come as a surprise to a lot of people that copiers containing hard drives are continually and, quite frequently, returned to the office supply center with sensitive data still housed inside. In fact, it has drawn the attention of Congressman Edward Markey, who wrote a letter to the chairman of the Federal Trade Commission urging him to look into the matter. The FTC has responded, assuring Markey that they will reach out to those in the copier and office supply industry “to ensure that they are aware of the privacy risks associated with digital copiers and to determine whether they are warning their customers about these risks, whether they are providing education and guidance on this subject, and whether manufacturers and resellers are providing options for secure copying.”

Everyone here at Kroll is passing around the latest news about the FTC reviewing its rule about the privacy of our children in cyberspace. From my perspective, this is incredibly exciting. As a parent of two children under five years old – I am pleased that the FTC is keeping current in the watch over the unique privacy issues of minors.  As a special population, no group is more vulnerable than our children. I can’t imagine the impact on my son or daughter – to find out at the age of 18 that he or she is a victim of ID theft with a criminal record (which he/she did not commit), damage to credit and countless other possible issues that can surface years later, during a loan or college application process.  I am looking forward to seeing the results of this review and the subsequent steps taken to protect the future of this country – our children.

On March 9, 2010, the Federal Trade Commission (FTC) announced a settlement in its case against an identity theft protection services firm that we’ll refer to as “Defendants.” The $35 million judgment was suspended to $12 million, payable to the FTC and 35 state Attorneys General. We’ll all be watching as this unfolds, because if the conditions of the judgment are not met, the entire $35 million will be due.